Economic benefit analysis of joint operation of cascaded reservoirs

The joint operation of cascaded reservoirs can generate various compensation benefits. How to calculate all compensation benefits scientifically and fairly, and how to share these benefits reasonably, will be of great importance for the sustainable development of the basin and for the rolling development of a cascaded reservoir of a hydropower station. This article examines the joint operation of Longyangxia and Liujiaxia reservoirs at the upper reaches of the Yellow River in China. To study the reservoir compensation benefits, the authors have built a compensative regulation model for the joint operation of the reservoir group. The electricity generation compensation economic effects of the joint operation of the Longyangxia and Liujiaxia reservoirs in 2005 were calculated. The results showed that the joint operation of cascaded reservoirs can generate remarkable economic benefits.